Judge: Jon R. Takasugi, Case: 23STCV28854, Date: 2024-05-15 Tentative Ruling

Case Number: 23STCV28854    Hearing Date: May 15, 2024    Dept: 17

Superior Court of California

County of Los Angeles

DEPARTMENT 17

TENTATIVE RULING

Defendant’s motion to compel arbitration is GRANTED. This matter is ordered stayed pending the completion of arbitration proceedings.

            On 11/27/2023, Plaintiff Tasha McGhee filed suit against American Credit Acceptance, alleging: (1) breach of contract; and (2) common counts.

Now, Defendant moves to compel arbitration of Plaintiff’s Complaint.

The motion is unopposed.

Legal Standard

Where the Court has determined that an agreement to arbitrate a controversy exists, the Court shall order the petitioner and the respondent to arbitrate the controversy …unless it determines that…  grounds exist for rescission of the agreement.” (Code Civ. Proc., § 1281.2.) Among the grounds which can support rescission are fraud, duress, and unconscionability. (Tiri v. Lucky Chances, Inc. (2014) 226 Cal.App.4th 231, 239.) The Court may also decline to compel arbitration wherein there is possibility of conflicting rulings on a common issue of law or fact. (Code Civ. Proc., § 1281.2 (c).)

Discussion

The party moving to compel arbitration “bears the burden of proving [the] existence [of an arbitration agreement] by a preponderance of the evidence.” (Rosenthal v. Great Western Fin. Securities Corp. (1996) 14 Cal.4th 394, 413.) The moving party also bears the burden of demonstrating that the claims fall within the scope of the arbitration agreement. (Omar v. Ralphs Grocery Co. (2004) 118 Cal.App.4th 955, 961.)

A.    Existing Agreement

Defendant submitted evidence that in 2017, Plaintiff contracted with a non-party car dealership to buy a used sedan on credit. (Contact, 1.) The dealership then assigned the contract to Defendant here, an automotive finance company. (See Contract at 2.)

The contract has an arbitration agreement that lets Plaintiff, the dealership, or Defendant—as the dealership’s assignee—choose to arbitrate:

a.      What Claims are Covered. A “Claim” is any claim, dispute or controversy between you and us that in any way arises from or relates to this consumer credit sale, the purchase you are financing by way of this Contract, the Vehicle and related goods and serves that are the subject of the purchase and this Contract, or the collection and servicing of this Contract, including but not limited to: . . .

· Disputes based on contract, tort, consumer rights, fraud and other intentional torts (at law or in equity, including any claim for injunctive or declaratory relief);

· Disputes based on constitutional grounds or on laws, regulations, ordinances, or similar provisions;

· Disputes about the validity, enforceability, arbitrability or scope of this Arbitration Provision or this Contract . . . . . . . .

i.                    Governing Law. This Arbitration Provision is governed by the Federal Arbitration Act [FAA] . . . .

(Contract, 4.)

Plaintiff did not oppose this motion, and thus is considered to have conceded to the existence of the arbitration agreement.

B.    Covered Claims

Plaintiff’s claims arise out the vehicle purchase that was the subject of the underlying Contract, and thus fall within the scope of the agreement.

Given that Defendant has established by a preponderance of the evidence that an arbitration agreement exists, and that Plaintiff’s claims are covered by that agreement, the burden shifts to the Plaintiff to establish that the arbitration clause should not be enforced. (Pinnacle Museum Tower Assn. v. Pinnacle Market Development (US), LLC (2012) 55 Cal.4th 223, 236. (Pinnacle).)

II.               Plaintiff’s Burden 

The party opposing arbitration bears the burden of proving, by a preponderance of the evidence any defense, such as unconscionability or duress. (Pinnacle, supra, 55 Cal.4th at p. 236.)

            Here, Plaintiff did not advance any defense to enforceability, as she did not oppose this motion. As such, she has not met her burden to show that the arbitration agreement should be not be enforced.

Based on the foregoing, Defendant’s motion to compel arbitration is granted. This matter is ordered stayed pending the completion of arbitration proceedings.

It is so ordered.

Dated:  May     , 2024

   Hon. Jon R. Takasugi
   Judge of the Superior Court

Parties who intend to submit on this tentative must send an email to the court at smcdept17@lacourt.org by 4 p.m. the day prior as directed by the instructions provided on the court website at www.lacourt.org.  If a party submits on the tentative, the party’s email must include the case number and must identify the party submitting on the tentative.  If all parties to a motion submit, the court will adopt this tentative as the final order.  If the department does not receive an email indicating the parties are submitting on the tentative and there are no appearances at the hearing, the motion may be placed off calendar.  For more information, please contact the court clerk at (213) 633-0517.